INP - Innamincka Petroleum
- Thread starter Aceyducey
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Anyone else following this stock? Looks like a ripper with people speculating Santos could move in and buy up the company since they're pretty much next door to each other and Santos already has the necessary knowledge and experience to get the oil out of the ground.
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I got back onboard the INP train yesterday when I saw Talbot buy $12m worth of the company
Think there is huge upside now with him onboard, and can see the rest of the big boys taking this potentially massive find much more seriously
Perhaps they know something we don't...
Think there is huge upside now with him onboard, and can see the rest of the big boys taking this potentially massive find much more seriously
Perhaps they know something we don't...
DJ MARKET TALK: Innamincka Maintained On Neutral By Macquarie (Down Rampers my remark sorry)
0135 GMT [Dow Jones] Macquarie maintains Innamincka Petroleum (INP.AU) at neutral after
recent share price rally; says more work needed to define resource. INP soared after
estimating oil in place of 120 million barrels at its Flax/Juniper filed. Macquarie
estimates net oil position of 16 million barrels using conservative recovery rate of 15%
to 20%. "While there remains a significant degree of upside from the current share
price based on potential reserves, we require further clarification on project delivery,
cost estimates and timelines," Macquarie says. Target price set at A$1.07. INP
trading up 3% at A$1.375. (APW)
Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com
(END) Dow Jones Newswires
October 04, 2007 21:35 ET (01:35 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
Friday 05 October 2007 11:35:05:200 AEST
Macquarie here is using very conservative figures of 15-20% recoverable rate = 16 mb ~ $1.10 ish. However, they don't know what the recoverable rate is of yet. Next door, Santos has recoverable rates of 30%. 30% recoverable rate = 30 mb ~ $2/share.
Until they announce what the recoverable rate is, we will not know exactly what the share is worth. I'd only be just speculation.
I would recommend buying at or near support around the $1.20. Gives good upside potential if recoverable rates are 30% and limited downside ($1.10 worst case scenario).
0135 GMT [Dow Jones] Macquarie maintains Innamincka Petroleum (INP.AU) at neutral after
recent share price rally; says more work needed to define resource. INP soared after
estimating oil in place of 120 million barrels at its Flax/Juniper filed. Macquarie
estimates net oil position of 16 million barrels using conservative recovery rate of 15%
to 20%. "While there remains a significant degree of upside from the current share
price based on potential reserves, we require further clarification on project delivery,
cost estimates and timelines," Macquarie says. Target price set at A$1.07. INP
trading up 3% at A$1.375. (APW)
Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com
(END) Dow Jones Newswires
October 04, 2007 21:35 ET (01:35 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.
Friday 05 October 2007 11:35:05:200 AEST
Macquarie here is using very conservative figures of 15-20% recoverable rate = 16 mb ~ $1.10 ish. However, they don't know what the recoverable rate is of yet. Next door, Santos has recoverable rates of 30%. 30% recoverable rate = 30 mb ~ $2/share.
Until they announce what the recoverable rate is, we will not know exactly what the share is worth. I'd only be just speculation.
I would recommend buying at or near support around the $1.20. Gives good upside potential if recoverable rates are 30% and limited downside ($1.10 worst case scenario).
When will we know what their recoverable rates are please?? Is that due out in thenear term i.e before end of October???????
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I think Talbot and his boys got a little excited on this one, they have paid an avg of 1.50 odd for their 8 million shares is it?
I also think a lot of people blindly follow Talbot into investments. So far he has only made a decent amount of money on SDL. The rest of his picks seem to be in the red.
Just because someone has millions of dollars does not make their investment decisions right.
Anyway about INP, I think flow rates of 1000 bpd would mean the sp has run ahead of itself. If there is 15 million barrels recoverable and a flow rate of 1000 per day, its going to take 41 years for them to pull out all the oil. Now I am one for long term investments but that just seems pointless.
I also think a lot of people blindly follow Talbot into investments. So far he has only made a decent amount of money on SDL. The rest of his picks seem to be in the red.
Just because someone has millions of dollars does not make their investment decisions right.
Anyway about INP, I think flow rates of 1000 bpd would mean the sp has run ahead of itself. If there is 15 million barrels recoverable and a flow rate of 1000 per day, its going to take 41 years for them to pull out all the oil. Now I am one for long term investments but that just seems pointless.
In the Mon SMH they stated that because of the trickiness of the reservoir, there is a good chance the company will only be able to extract around 15-20% of the 120MMBOIP. In addition the field is expected to have the potential to produce around 4,000BOPBD.
Therefore if we assume 120MMBOIP with recoveries of 17.5% (we will stick in the middle of current estimates) then we get recoverable 2P reserves of 21MMBO. If the field produced at plateau rate of 4000BOPBD, then the life of field would be approx 14.5 years (not taking into a/c natural field decline). Considering the time value of money, it would be preferred to have a higher daily flow rate, i.e. get the oil out of the ground quicker, but suppose lower oil flow is better than none. One advantage is that the discovery is onshore, which makes development/exploration costs a little cheaper. However, have not read the ASX release, only going off, what I have read about this project in the paper, so this should only be taken with a grain of salt.
Furthermore one needs to look at the type and quality of the crude, what is its API, (if it has been announced), as this will provide a good estimate of whether the oil will sell at a premium or discount relative to Brent Crude.
Therefore if we assume 120MMBOIP with recoveries of 17.5% (we will stick in the middle of current estimates) then we get recoverable 2P reserves of 21MMBO. If the field produced at plateau rate of 4000BOPBD, then the life of field would be approx 14.5 years (not taking into a/c natural field decline). Considering the time value of money, it would be preferred to have a higher daily flow rate, i.e. get the oil out of the ground quicker, but suppose lower oil flow is better than none. One advantage is that the discovery is onshore, which makes development/exploration costs a little cheaper. However, have not read the ASX release, only going off, what I have read about this project in the paper, so this should only be taken with a grain of salt.
Furthermore one needs to look at the type and quality of the crude, what is its API, (if it has been announced), as this will provide a good estimate of whether the oil will sell at a premium or discount relative to Brent Crude.
Anybody have any idea on the large run today? I saw it happening, and jumped in for a nice ride so far, but no idea exactly why. Large buy orders started around 1:30 and put on 16c until the close of trade
Was expecting an announcement or trading halt, but none forthcoming today?
Was expecting an announcement or trading halt, but none forthcoming today?
It is not dropping now, time for you to reeneter, large buy orders came in and it closed on its high for the day, great sign.
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DJ a couple more holes should speed up extraction.
I like this find because an oil pipeline to the coast already exists from the other SA fields.
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I presume that they will drill more production wells to increase the rate of recovery.
http://en.wikipedia.org/wiki/Oil_drilling
I don't get this picture with INP?? They have just found 120 mill barrels of oil with a possible upgrade and still are sitting at 1.30??
Surely with 89 US a barrel this should be double that or are we waiting on a technical picture to emerge as to recoverable percentages.
Or is it being kept down for possible Santos takeover??
Surely with 89 US a barrel this should be double that or are we waiting on a technical picture to emerge as to recoverable percentages.
Or is it being kept down for possible Santos takeover??
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Resolution 3: Increase in Non-Executive Director Remuneration
To consider, and if thought fit, pass the following resolution, as an Ordinary Resolution of
the Company:
“That for the purposes of ASX Listing Rule 10.17, clause 10.2 of the Company’s
Constitution, and for all other purposes, the maximum aggregate annual remuneration
payable to non-executive directors of the Company be increased from $150,000 to
$500,000 per annum (an increase of $350,000).
To consider, and if thought fit, pass the following resolution, as an Ordinary Resolution of
the Company:
“That for the purposes of ASX Listing Rule 10.17, clause 10.2 of the Company’s
Constitution, and for all other purposes, the maximum aggregate annual remuneration
payable to non-executive directors of the Company be increased from $150,000 to
$500,000 per annum (an increase of $350,000).
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Lioness,
Frankly I don't know if this is a reasonable pay raise or not - I was just posting to see what comments might result. It would be interesting if Talbot votes against it; my small holding would have no effect.
The forecast div has gone from 2.4c/2008 to 3.2c/2009 so perhaps he has earned it - but I wouldn't think so at Talbot's $1.50 per share.
I totally agreed on your target. It will get there then back.
II do not think it can by pass that figure?
Come again??
I did not understand your message??????????
Please repeat in english this time.
Does that mean you don't think it can pass the resistance points???